Energy Load Forecasting with Machine Learning: Models, Metrics, and Future Directions

Muhammad Faraz Manzoor ORCiD
Department of Artificial Intelligence, University of Management and Technology, Lahore, Pakistan Research Organization Registry (ROR)
Correspondence to: Muhammad Faraz Manzoor, Faraz.manzoor@umt.edu.pk

Premier Journal of Artificial Intelligence

Additional information

  • Ethical approval: N/a
  • Consent: N/a
  • Funding: No industry funding
  • Conflicts of interest: N/a
  • Author contribution: Muhammad Faraz Manzoor – Conceptualization, Writing – original draft, review and editing
  • Guarantor: Muhammad Faraz Manzoor
  • Provenance and peer-review:
    Unsolicited and externally peer-reviewed
  • Data availability statement: N/a

Keywords: Energy load forecasting, Smart grids, Deep learning models, Ensemble methods, Predictive accuracy.

Peer Review
Received: 15 June 2025
Last revised: 5 July 2025
Accepted: 19 July 2025
Version accepted: 4
Published: 5 August 2025

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Abstract

Energy load forecasting plays a crucial role in the efficient management and operation of smart grids, enabling utilities to optimize energy distribution and improve grid reliability. Recent advancements in machine learning (ML) techniques have significantly enhanced the accuracy and adaptability of energy load prediction models. This review explores various ML models used for energy load forecasting, including traditional models, deep learning approaches such as long short-term memory (LSTM) networks and gated recurrent units (GRUs), and ensemble methods. The review discusses the strengths and limitations of each approach, highlighting its applicability to different forecasting timeframes and data characteristics. Additionally, it examines the performance evaluation metrics commonly used to assess model accuracy and reliability. Although multiple studies have examined forecasting techniques, there is a lack of comprehensive evaluation that connects model choice with practical deployment constraints such as data quality, real-time scalability, and interpretability.

This review addresses this gap by systematically analyzing the challenges and emerging solutions in the context of smart grid applications. Despite the progress made, challenges related to data quality, computational complexity, and model interpretability remain significant barriers. The review concludes with an exploration of emerging trends and future directions in energy load forecasting, including hybrid models, federated learning, and reinforcement learning, which offer promising solutions to overcome existing limitations and improve forecasting performance in smart grid systems. Overall, the findings suggest that while no single model is universally optimal, integrating external factors, improving data quality, and adopting hybrid or explainable artificial intelligence (AI) approaches are critical for building more accurate, scalable, and interpretable forecasting systems.

Introduction

Energy load forecasting is important in smart grid management for the purpose of optimal demand side planning, resource and energy allocation, and cost optimization.1 The accuracy of prediction has been shown to be a necessity due to the growing integration of renewables and demand for more electricity. However, existing traditional forecasting methods, from statistical and econometric models, have limited success in generating such nonlinear and dynamic energy consumption patterns.2 In this context, machine learning (ML) is known as a game changer in the field, providing the ability to learn from historical consumption data and external factors to improve forecasting accuracy.

To better understand forecasting strategies, it is important to distinguish between types of energy load demands. Energy load forecasting can be further categorized based on specific end-use types such as cooling, heating, and general electricity demand, each having distinct characteristics and influencing factors. Cooling load forecasting is highly sensitive to outdoor air temperature and solar radiation, with significant variations during summer months and in commercial buildings. Heating load forecasting, on the other hand, is more influenced by low temperatures and seasonal shifts in winter, especially in residential zones. General electricity demand forecasting, while encompassing both heating and cooling needs, also includes lighting, appliances, and industrial usage patterns. These differences necessitate tailored forecasting models that account for the unique drivers and temporal patterns associated with each load type.

Importance of Energy Load Forecasting in Smart Grids

In order to balance supply and demand and to minimize operational costs and improve energy efficiency, smart grids are based on accurate energy load forecasting. This enables utility companies to generate power appropriately and not face energy crises or get dependent on backup power sources. Forecasting also provides for grid stability by knowing when peak demand will occur, and the supply is changed accordingly.3 As smart grids integrate more distributed energy resources, such as solar and wind power, forecasting becomes even more critical to manage intermittent generation and ensure grid reliability. If there is no right forecasting, energy providers might face supply versus transport mismatch, high operational cost, and poor energy distribution.4

Role of ML in Improving Forecasting Accuracy

ML has revolutionized energy load forecasting by addressing the limitations of traditional methods,5,6 Reinforcement Learning (RL) models are different from statistical models, which presume that data has a particular form to be modeled, but ML techniques can learn complicated patterns in data from history without preprogrammed declaration.7 Past consumption trends can be analyzed in a robust way that gives good predictions using supervised learning models like decision tree (DT) or random forest.8 Deep learning (DL) models, including the long short-term memory (LSTM) network and gated recurrent unit (GRU), excel in capturing long-term dependencies and seasonal variations. Moreover, hybrid models consisting of multiple ML techniques have demonstrated great potential in further increasing forecasting performance. By incorporating real-time data along with socioeconomic and weather-related factors, ML-based approaches offer a more responsive and precise method for forecasting energy load.9

Scope and Objective of the Review

This review examines smart grid energy load forecasting using a succinct but comprehensive discussion of ML techniques to predict the energy load in this smart grid. This is to evaluate the effectiveness of different ML models and how well they can predict performance and its limitations. In this context, a summary of certain advantages of using ML in forecasting and some of the implementation challenges and possible future research directions is presented. This study synthesizes the recent advancements in the field and proposes insights into how ML can enable smart grids to operate with higher efficiency and reliability, thus helping to adopt more sustainable energy management practices.

To guide the reader, the structure of the review is as follows: Section Research Methodology outlines the methodology adopted for this study, including the systematic literature review (SLR) process, search strategy, selection criteria, and inclusion/exclusion parameters. Section ML Techniques for Energy Load Forecasting presents a detailed literature review of ML techniques applied to energy load forecasting. Section Comparison of Predictive Techniques and Common Evaluation Metrics provides a comparative analysis of various forecasting methods, including traditional models, DL architectures, and ensemble techniques, evaluating their performance across different forecasting scenarios. Section Challenges and Future Directions discusses the key challenges, such as data quality, computational demands, and interpretability, and outlines future directions, including hybrid approaches, federated learning, and RL. Finally, Section Conclusion concludes the review by summarizing the main findings and emphasizing the need for continued research to enhance the accuracy and robustness of energy load forecasting in smart grids.

Research Methodology

This study follows a SLR methodology to comprehensively analyze existing research on energy load forecasting techniques, as shown in Figure 1. The methodology is structured to ensure transparency, reproducibility, and rigor in identifying, evaluating, and synthesizing relevant studies on ML models applied to energy load forecasting.10,11

Fig 1 | Systematic review process
Figure 1: Systematic review process.

Research Objective (RO) and Research Question (RQ) Formulation

This study uses a structured framework of ROs, RQs, and motivations to define the focus of the study in energy load forecasting, as shown in Table 1.

Table 1: ROs and RQs mapping.
SR#RORQMotivation
1Identify and analyze the most commonly used ML and DL techniques for energy load forecasting.What are the most frequently applied ML and DL techniques for energy load forecasting?Understanding the dominant models helps in recognizing methodological trends, strengths, and limitations, which can guide future research and practical deployment.
2Examine the primary application areas, forecasting timeframes, and data types used in energy load prediction.In what contexts, time horizons, and data environments is energy load forecasting commonly applied?Analyzing use cases across different settings highlights domain-specific requirements, temporal challenges, and data dependency of forecasting models.
3Investigate the key challenges in energy load forecasting and explore future directions to improve accuracy and scalability.What are the major challenges in energy load forecasting, and what future directions can enhance model performance?Identifying core challenges and emerging solutions can improve accuracy, real-time feasibility, and interpretability of forecasting systems in smart grids.

Literature Search Strategy

A search string was formulated to ensure that the search process captured only systematic and comprehensive studies relevant to energy load forecasting. The search string was designed to target literature focusing on the application of ML and DL techniques in forecasting energy consumption across various time horizons and contexts. The keywords and Boolean operators were defined as follows:

(“energy load forecasting” OR “electricity demand forecasting” OR “power load prediction”) AND (“machine learning” OR “deep learning” OR “time series prediction”) AND (“short-term” OR “long-term” OR “real-time”) AND (“smart grid” OR “energy systems” OR “utilities”)

This search string was applied across multiple academic databases, including IEEE Xplore, SpringerLink, ScienceDirect, and the Multidisciplinary Digital Publishing Institute (MDPI), to identify and collect relevant peer-reviewed articles.

Study Selection Criteria

In order to limit the studies considered in this SLR to the most relevant and high-quality research, we applied a structured and multistage filtering process.10,12 In this study, the selection was conducted in a sequential manner using rigorous screening at multiple levels, such as title-based screening, abstract-based filtering, and full-text review, as shown in Figure 2. This process refined the selection to studies that contain direct contributions of data, models, or insights relevant to ML and DL techniques for energy load forecasting.13,14

Fig 2 | Study selection process
Figure 2: Study selection process.

Title-Based Screening

In the first step of the selection process, a title-based screening was applied to the studies, where they were assessed based on their titles. Shortlisted research articles explicitly referred to techniques related to energy load forecasting, electricity demand prediction, time series modeling, ML, and DL. Also, studies with vague, overly general, or unrelated titles were immediately excluded to retain only relevant literature focused on forecasting within energy systems.

Abstract-Based Screening

After the title screening, the abstracts of the shortlisted papers were carefully reviewed to determine their relevance. If the study focused on ML or DL techniques specifically applied to energy load forecasting, then the study was included. It also prioritized papers discussing applications in smart grids, utility demand prediction, renewable energy integration, and real-time load management. Suitable for further review were abstracts that provided technical insights into model architectures, datasets used, and performance evaluation metrics. At this phase, studies that lacked technical depth, focused on unrelated domains, or did not employ data-driven forecasting methods were excluded.

Full-Text Review

Full-text review of the remaining studies completed the last stage of the selection process. This was an important step to ensure that the selected papers clearly described their methodology, experimental setup, and analytical results. Articles were included if they provided quantitative performance evaluation in the form of metrics such as root mean squared error (RMSE), mean absolute error (MAE), mean absolute percentage error (MAPE), R-squared (R2), or computational efficiency. Additionally, prioritized were studies that discussed challenges, limitations, and future research directions in the context of energy load forecasting. To improve the credibility and reliability of the reviewed literature, only articles published in high-impact journals or peer-reviewed conferences were considered. To ensure that only high-quality, methodologically sound, and impactful studies were included, papers with complete methodologies but lacking experimental validation, or those using outdated forecasting techniques, were excluded.

Inclusion and Exclusion Criteria

During the process of selecting high-quality and relevant studies, a set of predefined inclusion and exclusion criteria was applied to the study selection, as shown in Table 2. Refining the literature involved using these criteria to filter out studies that did not align with the ROs. In this SLR, the following specific inclusion and exclusion parameters were established, as detailed in the Table 2.

Study Selection Results

A total of 45 papers were selected and analyzed to address the RQs outlined above. Table 2 presents the distribution of studies based on their sources, while Table 3 provides a detailed list of the selected papers.

Table 2: Inclusion exclusion criteria.
CriteriaInclusionExclusion
Study typePeer-reviewed journal articles, conference papers, and high-impact workshop papersNon-peer-reviewed articles, book chapters, theses, white papers, or blogs
Research focusStudies focusing on ML and DL techniques for energy load forecastingStudies focusing on general data analytics or unrelated ML tasks
Dataset availabilityPapers that use publicly available datasets or provide details of proprietary datasets used for model training and evaluationStudies that do not specify datasets, making comparison and validation difficult
Technical depthPapers providing detailed methodology, including model architectures, training procedures, and performance evaluation metricsStudies lacking methodological clarity or experimental validation
LanguagePapers published in EnglishPapers published in languages other than English
Table 3: Study selection results.
PhaseProcessSelection StageElsevierSpringerIEEEMDPIOthersTotal
1SearchSearch string3191900471924003499687
2ScreeningTitle32797010445330
3ScreeningAbstract212918308106
4ScreeningFull text1110165345

ML Techniques for Energy Load Forecasting

ML techniques are used to model complex and nonlinear energy consumption patterns required by energy load forecasting. These techniques used historical data, real-time grid data, and external variables (weather, economic indicators) to leverage the prediction accuracy (Figure 3). In general, these ML models are used: traditional ML models, DL models, and ensemble models. Each of these categories has advantages and challenges different enough to make it appropriate for a different forecasting scenario. Detailed discussion of these approaches is given in this section, including how they are applied, how effective they are, and how well they perform.

Fig 3 | Taxonomy of techniques for energy load forecasting
Figure 3: Taxonomy of techniques for energy load forecasting.

Traditional ML Models

Energy load forecasting has traditionally relied on interpretable and computationally efficient ML models that perform well with structured data. Common examples of such models include the linear regression (LR), DT, support vector machine (SVM), and random forest (RF). These models are favored for their transparency and ease of implementation, particularly in short-term forecasting scenarios. For instance, Söderberg and Meurling15 conducted a comparative study on various ML models, including regression analysis and DTs, for predicting household energy consumption, highlighting their effectiveness in capturing consumption patterns. Similarly, Lahouar et al.16 developed a one-day-ahead load forecasting model using regression RF, demonstrating its accuracy and robustness in short-term load prediction. These studies underline the practical value of traditional ML approaches, particularly when interpretability and quick deployment are critical.

Linear Regression (LR)

One of the simplest models for energy load forecasting is linear regression with the assumption that a relationship with input variables (e.g., past energy consumption, temperature) and output variable (future energy demand) is linear (Figure 4). For example, Sarker et al.17 utilized linear regression combined with inverse matrix analysis to forecast energy demand in remote areas of Bangladesh, demonstrating its efficacy in regions with limited data availability. On the other hand, Mahmud18 employed linear regression analysis to predict electricity loads in isolated areas lacking historical data, underscoring the model’s practicality in diverse settings. The model is represented as:

Formula representing a linear regression model, depicting the relationship between the dependent variable Y and independent variables X, with coefficients beta and an error term epsilon.

where Y is the predicted energy load, Xi are input features, βi are coefficients, and ε represents error terms. While LR is computationally efficient, its main limitation is its inability to model complex, nonlinear relationships in energy demand.

Fig 4 | General mechanism of linear regression
Figure 4: General mechanism of linear regression.

Decision Tree (DT)

As DTs partition the dataset based on feature importances, DTs become suitable for capturing nonlinear dependencies in energy load data (Figure 5). DTs are good with categorical as well as numeric features, but are prone to overfitting, more so for deep tree structure. Likewise, Hambali et al.19 evaluated various DT algorithms for electric power load forecasting and found that the REPTree technique outperformed others, highlighting its effectiveness in handling nonlinear relationships in load data. Likewise, Jahan et al.20 designed a DT model using weather and power load data as inputs for short-term demand forecasting, demonstrating the model’s capability to capture complex dependencies in energy consumption patterns.

Fig 5 | General mechanism of DT
Figure 5: General mechanism of DT.

Support Vector Machine (SVM)

SVMs are effective for short-term load forecasting as they find an optimal hyperplane for classification or regression (Figure 6). Furthermore, Tian and Noore21 proposed an SVM-based approach for short-term load forecasting, demonstrating improved generalization and lower prediction error compared to neural network methods. On the other side, Li and Fang22 applied SVMs to power system load forecasting, effectively enhancing forecasting accuracy. The model is based on:

Mathematical representation of an optimization problem, specifically focusing on minimizing a loss function involving weights and a regularization term.

subject to constraints ensuring that predictions fall within an acceptable error margin. However, SVMs can be computationally expensive for large datasets.

Fig 6 | General mechanism of SVM
Figure 6: General mechanism of SVM.

Random Forest (RF)

RF is an ensemble of DTs that serves the purposes of improving forecasting accuracy and reducing overfitting (Figure 7). It merges the outputs from multiple trees, effectively improving robustness, and is a good candidate for energy load forecasting in dynamic ecosystems. Some researchers work on it like Dudek,23 who applied RF to short-term electricity load forecasting, demonstrating its ability to handle nonstationary and seasonal time series data effectively. Meanwhile, Gao et al.24 proposed an improved RF regression algorithm for ultra-short-term electricity load forecasting, achieving higher accuracy compared to traditional methods (Table 4).

Fig 7 | General mechanism of RF
Figure 7: General mechanism of RF.
Table 4: Comparison of traditional ml models for energy load forecasting.
ModelStrengthsWeaknessesBest ForComplexityReferences
Linear regressionSimple, interpretableCannot model nonlinear patternsBaseline forecastingLow17,18
DTsHandles categorical and numerical data wellProne to overfittingMedium-term forecastingMedium19,20
SVMRobust to outliersComputationally expensiveShort-term forecastingHigh21,22
RFHigh accuracy, reduces overfittingLess interpretableComplex energy load patternsMedium-High23,24

DL Models

The growing popularity of DL models in energy load forecasting stems from their ability to capture long-term dependencies and model complex nonlinear relationships in energy consumption data. Notable models in this category include the artificial neural network (ANN), LSTM network, and GRU. Unlike traditional models, these architectures are capable of automatically extracting hierarchical features from raw time series data, making them particularly effective in scenarios with highly dynamic and temporally correlated consumption patterns.

Artificial Neural Networks (ANNs)

ANNs consist of multiple layers of neurons that learn energy consumption patterns from historical data (Figure 8). Numerous researchers work on this model, including, Oreshkin et al.25 who introduced the N-BEATS neural network architecture, which demonstrated superior performance in mid-term electricity load forecasting across various European datasets. Similarly, Gao et al.26 proposed an ensemble deep random vector functional link (edRVFL) network, which achieved high accuracy in short-term load forecasting tasks by leveraging deep representation learning and ensemble strategies. The weight updates are as follows:

Illustration of weight update formula for a neural network in energy load forecasting, showing how weights are adjusted based on the learning rate and gradient of the error.

where wij are weights, h is the learning rate, and E is the error function. ANNs perform well for medium- to long-term load forecasting but require large datasets and high computational power.

Fig 8 | General mechanism of ANN
Figure 8: General mechanism of ANN.

LSTM Networks

Energy load data are captured with temporal dependencies by LSTM networks, a type of recurrent neural network (RNN). However, due to vanishing gradients in traditional RNNs, they overcome vanishing gradients through memory cells that store information for long periods (Figure 9). However, the DA-LSTM framework introduced by Bayram et al.27 is a dynamic drift-adaptive learning model designed for interval load forecasting. This approach enhances forecasting accuracy by adapting to changes in consumption patterns without requiring predefined drift thresholds. Meanwhile, a hybrid LSTM model was developed by Lu et al.28 incorporating online correction mechanisms. Their model integrates temporal and nontemporal features and employs an online correction strategy to adjust to real-time data distribution shifts, thereby improving day-ahead load forecasting accuracy. The cell state update is given by:

Formula representing the cell state update in Long Short-Term Memory (LSTM) networks for energy load forecasting.

where Ct is the cell state, Ct is the forget gate, and it is the input gate. LSTMs are highly effective for energy load forecasting due to their ability to recognize seasonality and trends.

Fig 9 | General mechanism of LSTM
Figure 9: General mechanism of LSTM.

Gated Recurrent Units (GRUs)

The main difference between GRUs and LSTMs is that the former has a simpler architecture and therefore computational complexity (Figure 10). The short-term dependency between the periods is balanced with the long-term dependency and therefore, it is a decent indication for real-time energy load forecasting. For example, Emshagin et al.29 developed customized LSTM and GRU models for short-term household electricity consumption prediction. Their study found that while both models effectively captured consumption patterns, LSTM slightly outperformed GRU in forecasting accuracy. Likewise, Dong and Grumbach30 introduced a hybrid long-term load forecasting method utilizing both LSTM and GRU networks. Their approach successfully integrated top-down, bottom-up, and sequential information, demonstrating the practicality of GRUs in capturing temporal dependencies in energy consumption data (Table 5).

Fig 10 | General mechanism of GRU
Figure 10: General mechanism of GRU.
Table 5: Comparison of DL models for energy load forecasting.
ModelStrengthsWeaknessesBest ForComplexityReferences
ANNCaptures nonlinear relationshipsRequires large datasetsMedium-term forecastingHigh25,26
LSTMModels long-term dependenciesComputationally expensiveLong-term forecastingVery High27,28
GRUSimplifies LSTM with similar accuracyMay not capture complex dependenciesReal-time forecastingHigh29,30
Ensemble Approaches

Ensemble learning combines the predictive strengths of multiple models to improve forecasting accuracy and reduce variance in predictions. This approach is particularly effective in addressing the limitations of individual models by aggregating their outputs. The common ensemble methods used for energy load forecasting include boosting, bagging, and hybrid models. Boosting techniques sequentially train models to correct errors of previous ones, while bagging methods reduce variance by averaging predictions across independently trained models. Hybrid models, on the other hand, integrate different algorithmic paradigms—such as combining traditional and DL models—to leverage the advantages of both.

Boosting Methods

Boosting methods, such as gradient boosting machines (GBMs), XGBoost, and AdaBoost, iteratively improve weak learners by focusing on difficult-to-predict instances (Figure 11). A bagging model named XASXG proposed by, Ding et al.31 which integrates autoregressive integrated moving average (ARIMA), support vector regression (SVR), and XGBoost. This model effectively captures the nonstationary and nonlinear characteristics of electricity load time series, resulting in superior forecasting accuracy across various Chinese cities. Similarly, Rubattu et al.32 developed a predictive model utilizing probabilistic LightGBM combined with temporal hierarchies and advanced feature engineering. Their approach achieved high accuracy in the BigDeal Challenge 2022, demonstrating the efficacy of boosting methods in load and peak forecasting tasks. The loss function for boosting is:

Mathematical formula representing the relationship in a machine learning context, expressing predictive modeling through function iterations.

where Fm (x) is the current model, hm (x) is the new weak learner, and g is a learning rate. These methods enhance accuracy but may suffer from overfitting if not carefully tuned.

Fig 11 | General mechanism of boosting method
Figure 11: General mechanism of boosting method.

Bagging Methods

To reduce variance and improve stability, bagging techniques such as RF and bootstrap aggregation perform a number of versions of the training dataset (Figure 12). Thus, these models are good at handling fluctuating energy demand patterns. A cluster-based bootstrapping method was introduced by Dube et al.33 for interval prediction of electricity demand. Their approach utilizes residual bootstrapping combined with unsupervised clustering to generate accurate interval forecasts, particularly beneficial in microgrid settings with high demand variability. Additionally, the BaggingSHAP model, which was proposed by Olumba et al.,34 combines bagging combines bagging with SHapley Additive exPlanations (SHAP) for enhanced interpretability in energy demand forecasting. The model achieved an R2 score of 0.9947, indicating superior predictive performance.

Fig 12 | General mechanism of bagging method
Figure 12: General mechanism of bagging method.

Hybrid Models

Traditional forecasting techniques are combined with the DL approaches using hybrid models to optimize the forecasting performance (Figure 13). As an example, RF and LSTM can be used together by an RF-LSTM model to select features with RF, apply LSTM to temporal pattern recognition while remaining both interpretable and accurate. Meanwhile, Zhang et al.35 proposed a hybrid model combining RF and LSTM to improve short-term electricity load forecasting, demonstrating reduced prediction errors compared to standalone models. Similarly, Ma et al.36 developed a hybrid RF-LSTM approach that leveraged RF for selecting the most relevant input features and LSTM for modeling sequential dependencies, achieving superior results in multistep energy load forecasting tasks (Table 6). Ensemble methods provide a robust solution for energy load forecasting, particularly when dealing with fluctuating consumption patterns and large-scale smart grid data. They enhance forecasting accuracy by reducing bias and variance while leveraging the strengths of multiple models.

Fig 13 | General mechanism of hybrid models
Figure 13: General mechanism of hybrid models.
Table 6: Comparison of ensemble approaches for energy load forecasting.
ModelStrengthsWeaknessesBest ForComplexityReferences
Boosting (XGBoost, AdaBoost)Improves weak learners iterativelyMay overfitHigh-variance energy patternsHigh31,32
Bagging (RF)Reduces variance, robustLess interpretableMedium-term forecastingMedium33,34
Hybrid (RF-LSTM)Leverages best of both modelsHigh computational costLong-term forecastingVery High35,36
Comparison of Predictive Techniques and Common Evaluation Metrics

The effectiveness of predictive techniques in energy load forecasting largely depends on the accuracy, reliability, and efficiency of the ML models employed. Selecting the appropriate technique requires evaluating which model performs best based on specific performance metrics, while also considering the trade-offs associated with each approach. This section reviews commonly used ML models for energy load forecasting and provides a comparative analysis of their strengths and limitations with respect to various evaluation metrics.

Performance Metrics Used for Evaluation

There have been diverse performance metrics used to assess the predictive accuracy and reliability of the ML models used in energy load forecasting. This is useful in determining how well the model will minimize errors, and if it can be applied to average real-world problems. Mean squared error (MSE), RMSE, MAE, MAPE, and R2 are the most common performance metrics.

Mean Squared Error (MSE)

MSE measures the average squared difference between predicted and actual values, with a focus on penalizing larger errors more than smaller ones. According to, Chai and Draxler37 MSE is a commonly preferred metric in regression tasks due to its mathematical simplicity and sensitivity to large deviations. Likewise, Willmott and Matsuura38 compared MSE with MAE, emphasizing MSE’s utility when highlighting significant prediction errors is crucial in model evaluation. It is calculated as:

Equation representing Mean Squared Error (MSE) formula used in predicting accuracy of models.

where yi is the actual value, ŷi is the predicted value, and n is the total number of data points. MSE is sensitive to outliers, as it squares the error terms, which can lead to a disproportionate influence of large errors.

Root Mean Squared Error (RMSE)

RMSE is the square root of the MSE and provides a more interpretable error metric in the original units of the data. As highlighted by, Hyndman and Koehler39 RMSE is particularly useful when large prediction errors are undesirable, offering a balance between interpretability and sensitivity. Meanwhile, Hong et al.40 emphasized the importance of RMSE in energy forecasting competitions due to its ability to reflect forecasting accuracy effectively across different models and datasets. It is calculated as:

Mathematical formula for Root Mean Squared Error (RMSE) used in evaluating forecasting accuracy.

RMSE is widely used in energy load forecasting because it reflects the magnitude of the error in a way that is more understandable to practitioners. However, like MSE, it is also sensitive to large errors.

Mean Absolute Error (MAE)

MAE measures the average magnitude of errors in a set of predictions, without considering their direction. However, Willmott et al.38 emphasized the interpretability and robustness of MAE in environmental and climate modeling contexts, showing its reliability across diverse datasets. However, Hyndman and Koehler39 discussed MAE as a reliable baseline metric in forecast accuracy comparisons, particularly useful when comparing models across datasets with different scales. It is given by:

Mathematical formula showing the Mean Absolute Error (MAE) calculation, highlighting the average magnitude of errors in a set of predictions.

MAE is less sensitive to outliers compared to MSE and RMSE, making it suitable for applications where large deviations are less critical. It provides a straightforward measure of how far the predictions are from the actual values on average.

Mean Absolute Percentage Error (MAPE)

MAPE calculates the error as a percentage of the actual value, making it easier to interpret and compare across different datasets. As noted by Makridakis,41 MAPE remains one of the most commonly used metrics in forecasting competitions due to its intuitive nature and interpretability. However Evans,42 also pointed out that MAPE’s sensitivity to low actual values may distort its usefulness, especially in datasets with high variability or occasional zero values. It is calculated as:

A mathematical formula displaying the calculation of Mean Absolute Percentage Error (MAPE), showing the equation for evaluating forecasting accuracy.

MAPE is useful when comparing forecast accuracy across different models and datasets, but it can be problematic when actual values are close to zero, leading to inflated error percentages.

R-Squared (R2)

R2 measures the proportion of the variance in the dependent variable that is predictable from the independent variables. According to Draper and Smith,43 R2 is widely used in regression analysis as it succinctly summarizes the explanatory power of a model. However, as noted by Alexander,44 R2 alone can be misleading in evaluating model performance, especially in cases of overfitting or when used with nonlinear models, thus warranting the use of adjusted R2 or complementary metrics. It is calculated as:

The formula for R-squared (R²) representing the proportion of variance explained by the independent variables in a statistical model.

Where y is the mean of the observed values. R2 provides a measure of the goodness-of-fit, indicating how well the model explains the variation in the data. A higher R2 value indicates a better model fit, though it does not always correlate with improved prediction accuracy, particularly in complex datasets (Table 7).

Table 7: Comparison of performance metrics for energy load forecasting.
MetricStrengthsWeaknessesBest Used ForSensitivity to OutliersReferences
MSEPenalizes large errors, easy to computeSensitive to outliers, hard to interpretMeasuring overall error magnitudeHigh37,38
RMSEIntuitive, in original units of dataSensitive to large errorsPerformance comparison across modelsHigh39,40
MAELess sensitive to outliersDoes not penalize large errors enoughWhen outliers are not as criticalLow38,39
MAPEEasily interpretable, percentage-basedIssues with values close to zeroComparing models across datasetsHigh41,42
R2Indicates how well the model fits dataDoes not guarantee prediction accuracyEvaluating goodness-of-fitMedium43,44
Strengths and Limitations of Different ML Models

Typically, when choosing an ML model for energy load forecasting, one needs to evaluate the strengths and weaknesses of each model in terms of the nature of the energy load forecasting task. The performance may vary from model to model according to the complexity of the data available and the length of the forecasting horizon as well as the amount of historical data available.

Traditional ML Models

Popular traditional ML models include linear regression, DTs, SVMs, and RF which are always popular for their interpretability and ease of implementation. These models are best applicable for reasonably simple, short-term forecasting tasks with relatively simpler and easy-to-understand data. But they are not very useful with long-term dependencies or high nonlinearity in the process data. For instance,Hippert et al.45 and Wang et al.46 demonstrated the effectiveness of linear regression in short-term load forecasting due to its simplicity and speed. DTs, as shown by Liu et al.47 and, Singh et al.48 are useful for capturing nonlinear relationships in structured energy data. Meanwhile, RF have been proven robust in handling noisy data and enhancing forecasting accuracy, as shown in the works of Lahouar et al.49 and, Deb et al.50 particularly in short-term electricity demand forecasting (Table 8).

Table 8: Comparison of traditional ml models for energy load forecasting.
ModelStrengthsLimitationsBest Use CaseComputational ComplexityReferences
Linear regressionSimple, interpretableLimited to linear relationshipsBaseline forecasting, short-term forecastsLow45,46
DTHandles nonlinear relationshipsProne to overfitting, poor generalizationSmall to medium-sized datasetsMedium47,48
RFRobust, reduces overfittingLess interpretable, computationally intensiveComplex forecasting tasksHigh49,50

DL Models

Indeed, energy load forecasting is a good application for DL models, especially LSTM networks, GRU, and even ANN. These models are capable of capturing the time series and the nonlinear patterns within a large amount of data. This type of model is great in finding long-term trends and fine relationships between time series data, which are perfect for predicting purposes when historical consumption data is used as a fundamental in forecasting future energy demand.

LSTM and GRU are structures of rather diverse DL models, being parts of the RNN, which aims to deal more efficiently with sequential data compared to classic feed-forward networks, e.g., ANN. GRUs are known to be not as good as LSTMs at capturing long-term dependencies in time series data; however, GRUs are computationally lighter and more efficient at performing similar tasks as LSTMs. Several studies have validated this: Kuster et al.51 and Suganthi and Samuel52 demonstrated the utility of ANN in modeling complex energy consumption behaviors due to its flexibility and learning capabilities. LSTMs, as applied by Marino et al.53 and, Kong et al.54 have shown exceptional performance in capturing long-term dependencies in electricity demand prediction. Meanwhile, GRUs have been successfully employed by Liu et al.55 and, Liang et al.56 where they offered competitive accuracy with reduced computational overhead compared to LSTMs, making them suitable for real-time forecasting applications (Table 9).

Table 9: Comparison of dl models for energy load forecasting.
ModelStrengthsLimitationsBest Use CaseComputational ComplexityReferences
ANNCaptures nonlinear relationships, flexibleNeeds large datasets, prone to overfittingMedium-term forecasting, large datasetsHigh51,52
LSTMLong-term dependency handling, robust for time seriesComputationally expensive, complex tuningLong-term forecasting, capturing seasonalityVery High53,54
GRUEfficient, faster training, captures temporal dependenciesMay not capture long-range dependencies as well as LSTMShort to medium-term forecasting, large datasetsHigh55,56

Ensemble Approaches

Ensemble methods like boosting (e.g., XGBoost) and bagging (e.g., RF) combine multiple models to improve forecasting accuracy and reduce variance. These methods are highly effective in energy load forecasting, particularly for datasets with noisy or fluctuating patterns. However, several researchers have demonstrated the effectiveness of these ensemble approaches. For boosting, Hong et al.57 applied gradient boosted regression trees (GBRTs) to improve short-term load forecasting accuracy in large-scale smart grid applications, while Taieb and Hyndman58 evaluated boosting strategies for probabilistic forecasting in energy systems. For bagging, Lahouar and Slama59 showed that RFs provided high accuracy and robustness in hourly electricity demand prediction and Zhou et al.60 confirmed their efficiency in handling feature-rich energy datasets and capturing nonlinear relationships (Table 10). Selecting the right ML technique for energy load forecasting depends on the specific characteristics of the dataset and the forecasting horizon. While traditional models are efficient and easy to interpret, DL and ensemble approaches offer superior accuracy in complex scenarios. Performance metrics such as MSE, RMSE, MAE, and R2 play a vital role in comparing and selecting the best model for a given task.

Table 10: Comparison of ensemble approaches for energy load forecasting.
ModelStrengthsLimitationsBest Use CaseComputational ComplexityReferences
BoostingImproves weak learners, high accuracyOverfitting, sensitive to noisy dataComplex, noisy datasets, high-variance forecastingHigh57,58
BaggingReduces overfitting, stableLess interpretable, computationally expensiveLarge datasets, medium-term forecastingMedium-High59
Challenges and Future Directions

In smart grids, energy load forecasting is extremely important for effective energy distribution and real-time usage management. Despite advancements, several challenges remain unresolved, particularly those related to improving prediction accuracy, model scalability, and general applicability across diverse systems. These challenges not only hinder current progress but also highlight key directions for future research and innovation in this field (Table 9).

Data Availability and Quality Issues

The availability and quality of data are considered to be among the main issues in energy load forecasting. Most of the effectiveness of ML models lies in the richness and reliability of the dataset that they are trained on. Often, the energy load data is sparse, noisy, and incomplete, and hence it results in inaccurate prediction.61 Recovery Digital Data, a source for historically obsolete utility consumption data, is often ill-suited for the months and years before a system implemented this type of data. In addition, data from various sources might not be standardized, and thus, it becomes challenging to concatenate heterogeneous datasets to train predictive models.62

There is another important issue: the quality of data. Typically, energy load data contains missing values, outliers, and errors that can do a lot of harm to model performance. Although the data may always be available, it does not always mean it covers all the possible conditions that affect energy consumption, such as weather events, special holidays, or unusual spikes of demand.63 Further, data heterogeneity, or where different sources collect data in various formats at different scales and intervals, also creates an issue. All of these factors contribute to the difficulty in developing such generalizable, accurate models. In future research, these aspects should be improved concerning data acquisition, data format standardization, and robust data handling methods for missing and noisy data.64

Computational Complexity and Model Interpretability

Energy load forecasting is another challenge and calls for computing complexity due to the usage of advanced ML models such as DL. Only with models like LSTMs networks and GRUs, we get good accuracy, but at a high cost of computation in terms of training and inference.65 Such models can be quite expensive in terms of processing power and time, as well as storage, in particular when large and high-dimensional sets of data are involved. Therefore, these models cannot be deployed in real time or on a vast scale, thus making them unfeasible for some utilities or organizations regarding the resources required and the cost associated with such deployment.66

In addition, DL models are also complex, and this constitutes a potential problem with model interpretability. Accurate prediction of energy consumption is not the only thing important in energy load forecasting; we also need to know why we predicted such things.67 Smart grids are particularly important given the need among stakeholders, grid operators, and regulators, as well as end users, to interpret how and why particular energy usage patterns are predicted. Often, such complex black box models, such as deep neural networks, cannot provide users with deep insight into factors that would either enable them to trust the predicted value or act on that particular prediction.68 Future research should aim to strike a balance between model complexity and interpretability, possibly through the integration of explainable artificial intelligence (XAI) techniques that can shed light on the decision-making process of these models without compromising their predictive power.69

Potential Improvements and Emerging Trends

Despite them, there are some trends and potential for improving the effectiveness of energy load forecasting models. The area of incorporation of external factors is what is being proposed: weather conditions, socioeconomic factors, and real-time events. However, it turns out that these variables can have a major effect on energy demand without affecting forecasting models that rely heavily on historical load data.70 Introducing the real-time data from the sensors, weather forecasting models, and social media trends, ML models can come up with more accurate and timely predictions as they inherently consider both predictable and unpredictable events.

Furthermore, it is also important that attempts for the integration of hybrid models, those that combine the strength of multiple ML technologies, should also be moving forward. Hybrid approaches, such as combining DL models with traditional ML models like RF or SVMs, can help improve model accuracy and robustness by leveraging the strengths of each individual model.71 In other words, DL models are great at processing huge amounts of data with intricate interrelationships, while quaint models have increased ability to interpret and run faster on a computer. By joining the use of these approaches, researchers can yet develop more accurate, simple, and readable forecasting systems.72

Another promising direction is the application of federated learning, where ML models are trained across multiple decentralized devices or nodes without transferring raw data. This is useful for collaborative learning across regions or utility companies within the context of smart grids while maintaining the privacy of data and minimizing the storage to be centralized.73 Furthermore, in circumstances where data sharing is restricted due to regulatory limitations, federated learning could prove very useful. Finally, another emerging trend is to incorporate RL techniques into energy load forecasting. This is because RL models can continuously learn and adapt to an environment that is changing, and that is precisely the case for dynamic, real-time forecasting scenarios.65 As energy consumption patterns change due to factors like economic shifts, population growth, or new energy policies, RL models could help adjust forecasting strategies on the fly, improving the accuracy of long-term predictions.

Limitations in Benchmarking and Evaluation Practices

Another key challenge in energy load forecasting research lies in the inconsistency and limitations of benchmarking practices. A significant number of studies rely on private or domain-specific datasets, which limits the comparability of results across different models and research groups. This lack of standard publicly available datasets leads to fragmented progress and makes it difficult to reproduce results or validate the effectiveness of newly proposed methods.66 Moreover, the evaluation metrics used in various studies are not always uniform. While metrics like MAE, RMSE, and MAPE are common, their application without proper context—such as normalization, peak-hour analysis, or seasonal decomposition—can obscure the practical implications of model performance.74 Some studies also report results on short forecasting horizons only, ignoring the long-term performance stability of models. Therefore, there is a pressing need for the development of standardized benchmarking protocols, unified datasets, and comprehensive evaluation frameworks that consider multiple forecasting horizons, variable load types, and model robustness under different operational scenarios (Table 11).

Table 11: Overview of key challenges and aligned future directions in energy load forecasting.
ChallengeDescriptionAligned Future Direction
Data availability and qualityIncomplete, noisy, or nonstandardized datasets hinder model accuracy and generalizabilityData standardization, robust preprocessing, integration of real-time sources
Data heterogeneityVarying formats, scales, and intervals from different sources make it hard to train unified modelsFederated learning and unified data representation methods
Computational complexityHigh computational cost for training and deployment, especially for DL modelsLightweight hybrid models, hardware-aware optimization
Model interpretabilityDeep models act as black boxes, reducing trust and usability for decision-makingXAI integration, model simplification
Scalability across regions/systemsModels often trained on a small scale or local data may not generalize wellFederated learning, transfer learning
Forecasting under uncertaintyLimited adaptability to changing patterns due to events or policy shiftsRL, real-time adaptive models
Benchmarking and evaluation practicesLack of standardized datasets and inconsistent use of evaluation metricsCommon benchmarking protocols, open-access repositories
Conclusion

Energy load forecasting is an important task to improve the energy distribution and to increase the operational efficiency of smart grids. It has been shown that a wide array of ML techniques can be effectively applied in order to boost the forecasting accuracy to a point where better decisions can be made by energy providers, while at the same time enhancing the pursuit of the sustainability goal of energy consumption efficiency. Different aspects of the forecasting task, for instance, the length of the forecast horizon, the complexity of the data and computational resources, show that traditional ML models, DL architectures like LSTMs and GRUs, and ensemble methods all have different benefits.

Yet, there are several challenges that have not yet been overcome in order to fully unleash these models’ potential. Nevertheless, despite these issues related to the data availability and quality, including sparse and noisy datasets, there has not been much progress in developing accurate and robust forecasting systems. As for the computational complexity of such models, especially of DL, which is quite advanced, it raises doubts about the possibility of their real-time implementation in a resource constrained environment. Furthermore, model interpretability is an open issue for the smart grid system stakeholders since the models need to explain and convince stakeholders of the predictions.

This study has several limitations. First, the review considered only peer-reviewed papers written in English, so relevant work published in other languages or in industry reports may have been missed. Second, most of the evidence is drawn from small-scale case studies focused on temperate-region grids, which may limit the generalizability of the findings to larger or more climate-diverse systems. Third, the analysis groups models by broad families rather than by specific architectural choices, which can hide finer factors that affect performance. Finally, the study does not quantify the economic impact of forecast errors, leaving the practical value of the reported accuracy gains open to further verification.

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